Key Points
- TWU and Uber agree on principles for gig workers.
- The agreement follows another made earlier this month with DoorDash.
The Transport Workers' Union (TWU) and Uber have signed a statement of principles for greater worker protections for delivery and rideshare platform workers, including supporting industry-wide standards of a guaranteed minimum wage.
In a published on Tuesday, Uber and the TWU agreed to four principles based on setting a minimum wage, dispute resolution mechanisms, voices for workers and the enforcement of those standards.
TWU general secretary Michael Kaine on Wednesday said the deal represents a "massive day in Australian industrial history".
"This is a breakthrough moment that at its heart means food delivery riders and rideshare drivers will have safer, fairer working conditions and dispute procedures.
"That sets out a path for the future, and we hope it will bring some comfort to gig workers who have faced difficulty in the past, as well as the families of those tragically killed while carrying out this work that Australians have come to rely on."
Mr Kain said it was the right step towards gig workers getting more protections.
"We've got to get past this divide in our legal system which says, if you're an employee you get all the entitlements built up over decades. But if you're an independent contractor, even if you're highly reliant on the company that engages you, all of a sudden, you get none," he said.
“This is a massive day in Australian industrial history.
"A gig giant has come to the table saying they want to be regulated because of the strength of transport workers. We will take this momentum forward to ensure workers receive enforceable protections.
“No gig worker should have to go to the High Court to fight for basic rights. That’s what our current outdated system forces them to do. This agreement with Uber is about modernising our system so workers have rights set and enforced by a tribunal."
UberEats driver Ady welcomed the agreement.
"Driving a bike is considered the most dangerous form of transport," he said.
“Enforceable rights doesn’t mean we can’t have flexible work. We can and should have both. This first step is great and we will keep fighting until we have sustainable and safe workplace protections.”
Rideshare and delivery drivers - including those on the Uber and UberEats platforms, altogether make up more than 100,000 workers in Australia.
NSW Transport Workers' Union Secretary Michael Kaine (centre) along with Senator Tony Sheldon (second left) and Uber drivers. Source: AAP / DAN HIMBRECHTS/AAPIMAGE
"Today, we have taken another step forward in this mission, with Uber and the Transport Workers Union (TWU) signing a Statement of Principles focused on providing a safety net for those working in the on-demand economy while protecting the flexibility that earners value," Uber wrote on its website.
"This is the first time a platform company in Australia has struck a deal with a union across both the rideshare and food delivery industries and is the result of months of detailed discussions."
Employment minister Tony Burke has separately signalled his government’s intention to legislate to give the Fair Work Commission new powers to set minimum standards for gig workers.
"We don’t want Australia to be the sort of country that allows workers to earn less than the minimum wage or be subjected to dangerous, unregulated conditions," he said in a statement.
"Australians want the flexibility and the convenience of the gig economy but they don’t want the people on the other end of the app getting ripped off or dying on our roads."
Mr Burke said work has begun to develop the detail of the legislation to provide a national approach to addressing the concerns, which will be done with cooperation from unions and the gig economy workers.
He welcomed the TWU and Uber for striking a deal that "recognises gig workers need more rights".
What's a gig economy?
A gig economy is a free market system in which temporary positions are common and organisations hire independent workers for short-term commitments. This is where companies typically hire subcontractors or freelancers to do work, rather than employ them as employees.
Unions have been critical of the gig economy due to a lack of rights for workers. The TWU has raised concerns that delivery drivers often aren't protected by the company that pays them against assaults, accidents and other dangers they face on the job.
Earlier in June, a court ruled that the family of Xiaojun Chen, who died while riding his motorbike in the Sydney suburb of Zetland in September 2020 while working for HungryPanda, be paid $834,000 in compensation.
The court ruled that Mr Chen was an employee rather than a contractor, in a potential landmark case for gig workers.
Mr Chen’s widow Lihong Wei told SBS Mandarin TV she hoped it was all a bad dream.
"Our parents [have] become older overnight," Ms Chen said.
"They are in poor health now. I am still having psychotherapy. I just hope this is a dream. But the judgement of the case shows that the dream is real."
Tuesday's agreement is the second milestone for the TWU this month for gig workers' rights, with the union signing a Memorandum of understanding (MoU) with food delivery platform DoorDash on 6 June.
"It also recognises that workers deserve transparency around pay and conditions, the opportunity to contribute to a collective voice and access to a fair dispute resolution process," the TWU wrote on its website.
"This major win demonstrates what can be achieved by workers demanding change and companies being prepared to listen. By campaigning together, we can achieve the regulation workers desperately need to work safely and sustainably in road transport."
